Washington – The House is set to vote Wednesday on a tax bill that would expand the child tax credit and some business tax credits.
Legislation known as the Tax Cuts for American Families and Workers Act of 2024, aims to provide assistance to low-income families. While it was more modest than the pandemic-era credit hike that greatly reduced child poverty and ends in 2021, Democrats have pushed to revive the aid and generally hailed the move as a positive step.
The legislation would make it easier for more families to qualify for the child tax credit, while increasing the amount from $1,600 per child to $1,800 in 2023, $1,900 in 2024 and $2,000 in 2025. It will also adjust the limit in future years. inflation. When fully enacted, it could lift at least half a million children out of poverty, according to the Center on Budget and Policy Priorities.
The bill also includes some revived tax breaks for businesses, such as research and development deductions. Those provisions make it more palatable to congressional Republicans, who have been reluctant to support expanding the child tax credit, giving the Biden administration what they see as a big victory in an election year.
Jason Smith, R-Missouri, chairman of the House Ways and Means Committee, and Ron Wyden, D-Oregon, chairman of the Senate Finance Committee,earlier this month, he introduced “a common-sense, bipartisan, bicameral tax framework that promotes financial security for working families, boosts growth and American competitiveness, and strengthens communities and Main Street businesses.”
“American families will benefit from this bipartisan agreement, which provides greater tax benefits, strengthens Main Street businesses, increases our competitiveness with China and creates jobs,” Smith said.
The House of Representatives will bring the bill to a vote on Wednesday under a procedure known as a suspension of the rules, preferring to fast-track the bill with a vote that requires two-thirds of the chamber’s support. The maneuver avoids procedural voting, which has been problematic in recent months.
House conservatives have blocked a vote several times in recent months to approve a bill’s rule, which is usually needed before the full chamber can vote. The move made it increasingly difficult for House GOP leadership to guide the legislation through the chamber and allowed a small group of critics to effectively lock the floor with their opinions.
On Tuesday, a group of moderate New York Republicans used that tactic, blocking a rule vote in protest of a tax bill that lacks state and local tax cuts. But the impasse quickly broke after the group met with Speaker Mike Johnson.
Johnson said in a statement Wednesday morning that he supports the legislation.
“The Tax Relief for American Families and Workers Act is important bipartisan legislation to revitalize tax reform that supports conservative growth. Most importantly, the bill also ends a wasteful COVID-era program, saving taxpayers tens of billions of dollars. Chairman Smith deserves great credit . to bring this bipartisan bill to committee with a strong vote of confidence and to regularly mark up related bills earlier in this Congress,” he said. “This bottom-up process is a good example of how Congress should pass legislation.”